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Colt1911 [192]
3 years ago
6

A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren

t forward price for the 4-month forward contract is $42.75. The 4-month risk-free interest rate (with continuous compounding) is 7.90%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92
Business
1 answer:
padilas [110]3 years ago
8 0

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

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Oxford, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year. The company incurs
Nookie1986 [14]

Answer:

3,000 physical units in the production

Explanation:

Given that,

Oxford started work on 3,000 units during the period

Units were 70% of the way through manufacturing

Therefore,

Physical units in the production = 3,000 units

Equivalently units of production is as follows:

= 70% of Physical units in the production

= 0.7 × 3,000 units

= 2,100 units

Hence, it would be correct to say that the company has 3,000 physical units in the production.

8 0
3 years ago
This year Luke has calculated his gross tax liability at $1,800. Luke is entitled to a $2,400 nonrefundable personal tax credit,
Fantom [35]

Answer:

Luke's net tax due or refund is $2,900

Explanation:

In order to calculate Luke's net tax due or refund we would have to make the following calculation:

Luke's net tax due or refund=Luke's non refundable credit+income taxes withheld from his salary

Luke's non refundable credit=non refundable personal tax credit-gross tax liability

Luke's non refundable credit=$2,400-$1,800

Luke's non refundable credit=$600

Therefore, Luke's net tax due or refund=$600+$2,300

Luke's net tax due or refund=$2,900

Luke's net tax due or refund is $2,900

6 0
3 years ago
In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of internat
otez555 [7]

Increased competition.

Answer: Option 3.

<u>Explanation:</u>

Free trade is the trade of goods and services from one country to the other country without any boundations and without any restrictions. As a result of the free trade, the consumers have more variety of a particular good in the market.

In this particular case, since Rooby is no longer the only producer of this particular because of the free trade in the market, he can not charge too high for a particular good and it increases the competition between the producers.

5 0
3 years ago
Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note that the
elena55 [62]

Answer: Net Asset Value = 1950

Explanation:

Assets = $225 million

Liabilities = $30 million

Shares outstanding = 10 million

We can compute the Net Asset Value, using the following formula:

<em>NAV\ per\ share= \frac{Assets - Liabilities }{Outstanding\ Shares}</em>

<em>NAV\ per\ share = \frac{225 - 30}{10}</em>

<em>NAV per share = 19.5</em>

<em>Therefore, the NAV of 100 share is 1950</em>

6 0
3 years ago
The Good Earth Company created a special baby shampoo designed for children 5 years old or younger. The company provided an exce
maria [59]

Answer: b. The company did not define its business in terms of the benefits customers seek.

Explanation:

In order for a business to make money, it needs to provide its customers with what they want not what the company wants the customers to want.

In this scenario, people switched to shampoos that could be used by people of all ages instead of just small children because this is what they wanted but not what the company provided. If the company had defined its business in terms of what their customers wanted, they would have made an all age shampoo which would have been bought.

8 0
2 years ago
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